020 7898 0500The US dollar held at a 10-month low against the pound after data dampened expectations of a US rate hike later in the year.
US rate hike expectations have now dropped to a 50% probability after the latest inflation data on Friday. With no top-tier data this week, markets have plenty of time to mull over the future direction of interest rates. The repeated disappointment on prices puts a question mark above the Federal Reserve’s confidence that inflation would soon rebound.
Yesterday afternoon saw US consumer confidence again worse than expected, which compounded the issues for the dollar. Today and the rest of the week remains very quiet on the data front.
